neoliberalism and the washington consensus: the case of chile
TRANSCRIPT
NEOLIBERALISM AND THE WASHINGTON CONSENSUS:
THE CASE OF CHILE
TAKEAWAYS FROM VIDEO
Title: “Garden of the Forking Paths”
Setting: Argentina
Themes: Social bases of political conflict and polarization; “old” vs. “new” Argentina
Key figures: Juan and Eva Perón, Carlos Saúl Menem [note successors: Néstor Kirchner and Cristina Fernández de Kirchner]
12. STRATEGIES FOR ECONOMIC DEVELOPMENT
The Liberal Era (1880s-1920s)Import-Substitution Industrialization (1930s-
1970s)The Socialist Alternative (1950s-1980s)Neoliberalism (1980s-present)
Free Trade Countermoves: MERCOSUR and ALBA
Poverty and Inequality
WASHINGTON CONSENSUS
Reducing the role of the state Less regulation Privatization
Liberalizing trade Reduce tariffs, quotas = less protection Expand exports, seek partners
Promoting the private sector Foreign and local production Stimulate market competition
CHILE: BASIC STATS
Population 17.0 millionGNP/capita 10,750 USDPoverty rate 11.5 %
CHILE: OVERVIEW
Natural Resource: Minerals Nitrates Copper Sparse migration
Export-Import Growth Pacific Coast connections Copper as key Political democracy (of sorts)
Democracy and Military Rule Party politics (1940s-70s) Socialism via democracy? Salvador Allende (1970-73) The Pinochet regime (1973-1989)
Neoliberal Politics and Policy Democracy (1990-present) Economic uncertainty + reliance on exports (again)
DEMOCRATIC PRESIDENTS
Center-Left alliance: Concertación, renamed Nueva Mayoría (New Majority) for 2013-14 election
Patricio Aylwin (1990-94)Eduardo Frei (1994-2000)Ricardo Lagos (2000-06)Michelle Bachelet (2006-10, 2014-)
Right: Sebastián Piñera (2010- )
POLICIES IN CHILE
Trade liberalization Unilateral + FTAs Diversification of destinations
PrivatizationStability (low inflation)Foreign investmentPoverty and inequality
EXPORTS
Products: copper, fruits and nuts, fish and seafood, wood (and wine)
Partners (2009): China 16.5 % USA 11.3 Japan 9.1 South Korea 6.5 Brazil 4.6 Mexico 4.1
INEQUALITY
Mexico .461Argentina .513Chile .549Brazil .570
USA .408
Thus is born a “poster child”…